3.

1 CORPORATE IMAGE STRATEGY

The success of Brand L’Oreal lies in the fact that the company succeeded in reaching out to the
customers of different countries of the world, across different income ranges and cultural patterns,
giving them the appropriate product they are worthy of. The area of expertise of L’Oreal being
that it succeeded almost in every country that it entered. The strategies of L’Oreal was varied
enough to help it and stop itself from restricting itself in a single country. L’Oreal sold its product
based on customer demand and country want rather than keeping the product identical across the
globe. It built an ample number of brands or mammoth brands entrenched to the restricted culture
and which appealed to a variety of segment of the universal market instead of generalizing the
brand and edible in innumerable culture. L’Oreal went on to being a local product in every
international market. The brand extension of L’Oreal also came in the same sector or the same
segment of the market. L’Oreal believed in growing its expertise in the segment it is conscious of
rather than going into a completely new sector of the market.

L’Oreal had built a dozen or so mega brands rooted in the local culture and appealing to different
segments of the global market. Instead of homogenizing the various brands and making them
palatable in myriad cultures, Owen-Jones decided to embody their (the brands’) country of origin,
turning what many marketing gurus considered a narrowing factor into a marketing virtue.

As a senior L’Oreal manager put it, “You have to be local and as strong as the best locals but
backed by an international image and strategy. We have made a conscious effort to diversify the
cultural origins of our brands."

3.2 BRAND DEVELOPMENT STRATEGY

Their strategy for leadership is based on continuous investment in rigorous scientific research and
development. This enables the brands to deliver products which are innovative, highly effective,
practical and pleasant to use, and which are manufactured to the most demanding standards of
quality and safety. L’Oreal aim for excellence, and constantly challenge ourselves and our
methods. They place great value on honesty and clarity: their consumer advertising is based on
proven performance and scientific data. L’Oreal are committed to building strong and lasting
relationships with their customers and our suppliers, founded on trust and mutual benefit. L’Oreal
do business with integrity: L’Oreal respect the laws of the countries in which L’Oreal operate and
adhere to good corporate governance practices. L’Oreal maintain high standards in accounting and
reporting, and support the fight against corruption. L’Oreal deliver long-term, sustained
shareholder value by protecting and making the most effective use of company assets.

Two questions often arise regarding brands: ‘What makes a brand strong?’ and ‘How do you build
a strong brand?’ To answer these questions, we introduces the customer-based brand equity
(CBBE) model. This model incorporates theoretical advances and managerial practices in
understanding and influencing consumer behaviour. Although useful perspectives concerning
brand equity have been put forth, the CBBE model provides a unique point of view as to what
brand equity is and how it should be built, measured and managed. The CBBE model approaches
brand equity from the perspective of the consumer – whether this be an individual or an
organization. Understanding the needs and wants of consumers and organizations and devising
products and campaigns to satisfy them are at the heart of successful marketing. In particular, two
fundamental questions faced by marketers are: ‘What do different brands mean to consumers?’
and ‘How does the brand knowledge of consumers affect their response to marketing activity?’

L’Oreal CBBE